Qwest Delays Audited 2002 Statement

Qwest Communications International announced Thursday it will delay the release of its audited 2002 annual report until July 15.

Qwest sought the extension because it is continuing to restate earnings reports from 2000 and 2001 that will impact the 2002 results, the Denver-based telecommunications giant said in a news release.

The 2002 financial report was initially due March 31, but lenders of the Qwest Services Corp. credit facility and QwestDex term loan have granted Qwest two-month extensions twice.

Janco Partners analyst Tom Friedberg predicted the delay would have few implications.

"If it continues to drag on, I would imagine the banks would agree to another waiver, he said.

Qwest auditor KPMG-LLP may not sign off on the audited results until the Securities and Exchange Commission completes its investigation into Qwest's accounting of network capacity swaps, equipment sales and other transactions, Friedberg said.

"I think the company is frustrated with the progress of getting a settlement with both its auditors and the SEC," he added.

In February, Qwest released its unaudited 2002 statement that showed the company lost $35.9 billion, or $21.35 per share, compared with a loss of $4.8 billion, or $2.88 per share, in 2001.

The 2002 loss included a $30 billion goodwill reduction and $10.9 billion in asset impairments. Revenue in 2002 was $15.5 billion, down about 7 percent from $16.7 billion in 2001.

The company also said Thursday it would release first quarter earnings for 2003 on May 29.

Qwest shares were up 1 cent at $4.58 in afternoon trading on the New York Stock Exchange.